The Minister of Finance, Mrs. Kemi Adeosun may travel to Bijing, China next week to conclude arrangement on how to get $2 billion loan from the Export-Import Bank of China.
Adeosun may go with the Governor of the Central Bank of Nigeria Godwin Emefiele to negotiate the loan as the Federal Government is trying to raise about N3 Trillion abroad to cover part of its over N6 Trillion 2016 budget.
It would be recalled that President Muhammadu Buhari requested China Government last December to fund rail and power projects.
Investigation revealed that Mrs Adeosun, would also discuss the issue of the rail project, which perhaps may lead to signing a pact with the Chinese Government.
While the government official foresaw a $2 billion China loan, a financial source put the amount at more than $1 billion. The Finance ministry could not be immediately reached for comments.
Mrs Adeosun has said Abuja has held “explanatory talks” with the World Bank. It has also asked the African Development Bank for a $1 billion budget support loan.
A World Bank loan would probably be tied to specific goals with strings attached. As well as infrastructure projects, Nigeria also wants loans to refinance existing debt, one financial source said – an idea that would be hard to sell to the World Bank or other development-focused lenders.
The World Bank has confirmed talks have been held on “Development Policy Operation” funding, which typically aims to improve infrastructure and create jobs. The multilateral lender has been studying projects to fight poverty in the North.